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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have been resident in Japan since Nov 23 2011. I will

Resolved Question:

I have been resident in Japan since Nov 23 2011. I will remain non-UK resident until at least 5 Apr 2017 (ie at least 5 full consecutive tax years). I am thinking to sell various unit trusts and financial investments in UK during this year (likely timing of sale before Oct 2016). I believe that if I do that and provided I do not return to live in UK until 6 Apr 2017 or later, any gains on such sales will not be subject to CGT.
I am seeking confirmation on this.
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply.

Your understanding is correct.

Provided you remain non resident in the UK for UK tax purposes in this tax year 2016-17, any gains made on sale of unit trusts and financial investmenst would not be chargeable to UK CGT.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply.

Your understanding is correct.

Provided you remain non resident in the UK for UK tax purposes in this tax year 2016-17, any gains made on sale of unit trusts and financial investmenst would not be chargeable to UK CGT.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

29/06/2016 01:22

Customer: replied 1 year ago.
Thank you. Just to be absolutely certain, this means that even though I make the disposal and gain WITHIN the 5 consecutive tax year period, provided I do not return to UK until that 5 year period (ie return AFTER 6 Apr 2017), there will be no CGT.
Also, do I need to declare the gain on my FY2016-17 UK tax return when I come to complete it next year?
Thank you
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply.

You would have stayed outside the UK for at least 5 full tax years ..come back on 6 Apr 2017 and not 5 Apr 2017.

You don't have to declare these gains in your 2016-17 tax return as you would be non-resident for tax purposes.

I hope this is helpful.

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Expert:  taxadvisor.uk replied 1 year ago.

I thank you for accepting my answer.

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